Debt relief order for statute barred debts

CeeGee81181

Hi everyone,

Firstly, sorry if it is inappropriate to post this on a new thread but all this technology is rather new to me!

Have been researching about a DRO as me and partner have just under 15000 debt each. However, none of mine are actually on my credit rating as they are so old; at least 6 years if not more. Only 1500 of debt on mine and 7000 on partners credit rating. The CAB have advised me to contact these companies to get final balances, however this makes me nervous as I will then be admitting the debt, making them non statute barred. I guess I have a chance of being debt free, or if the DRO fails then being in an even worse position as they can enforce the debts again.

Also, very scared that during DRO period another debt could come to light to ruin it all!

Any advice much appreciated. Xxx

glentoran99

CeeGee81181 wrote: »

Hi everyone,

Firstly, sorry if it is inappropriate to post this on a new thread but all this technology is rather new to me!

Have been researching about a DRO as me and partner have just under 15000 debt each. However, none of mine are actually on my credit rating as they are so old; at least 6 years if not more. Only 1500 of debt on mine and 7000 on partners credit rating. The CAB have advised me to contact these companies to get final balances, however this makes me nervous as I will then be admitting the debt, making them non statute barred. I guess I have a chance of being debt free, or if the DRO fails then being in an even worse position as they can enforce the debts again.

Also, very scared that during DRO period another debt could come to light to ruin it all!

Any advice much appreciated. Xxx

If a debt is statute barred it cant become unstatute barred

fatbelly

CeeGee81181 wrote: »

Hi everyone,

Firstly, sorry if it is inappropriate to post this on a new thread but all this technology is rather new to me!

Have been researching about a DRO as me and partner have just under 15000 debt each. However, none of mine are actually on my credit rating as they are so old; at least 6 years if not more. Only 1500 of debt on mine and 7000 on partners credit rating. The CAB have advised me to contact these companies to get final balances, however this makes me nervous as I will then be admitting the debt, making them non statute barred. I guess I have a chance of being debt free, or if the DRO fails then being in an even worse position as they can enforce the debts again.

Also, very scared that during DRO period another debt could come to light to ruin it all!

Any advice much appreciated. Xxx

Very few DROs are revoked. Why would yours be?

If another old debt emerges during the moratorium then just treat it as a statute barred debt. But it is best if all debts are included in the first place.

You need to provide the CAB with a list of creditors, balances and reference numbers. As accurate as you can

CeeGee81181

Thanks so much to both of you! The reason I am concerned I may not be eligible is if I contact an old creditor with a request for a balance and the debts exceed the DRO allowance of 15000 due to charges etc that I have not been aware of. I was worried that if I request this info, then that would be tantamount to proof for them that I am liable for the debt, and if a DRO was not an option for me then I would have stirred up the hornets nest. But now i know a debt cannot become active again after it is statute barred then I can go ahead and contact them. Is that right?
Also, how can you be sure that there are no debts lurking that rear their ugly head in the moratorium period, making the DRO fail? This has happened to me once before, where a debt I didn't know I had came to light as a bailiff at my door and I had to pay straight away! Think I've told the cab all the info, but nervous I've missed something.
Thanks again!

poppasmurf_bewdley

If a debt is statute barred, then there is no need to include them in a DRO.

CeeGee81181

Yeah, that is what I thought, but then CAB said to include them in case they manage to prove I'm liable for the debt in the future. If i contact them, that may prove im owning up to the debt, perhaps? But then as has been pointed out, statute barred debts cant be unbarred.... So confused, but grateful for your replies!

National_Debtline

Hi CeeGee

The first thing I would say is:

If in doubt, always list a debt in your DRO.

The Insolvency Service gives the following guidance:

Only where, prior to the DRO application being submitted, limitation has been independently established and the debtor has an acknowledgment or certainty that the debt was statute-barred prior to the date of the application then the debt should not be listed.

If you are certain that a debt is statute barred, you can choose to exclude it from the application, but you do so at your own risk - if it later comes to light that the debt was not SB, your DRO could be revoked.

As others have pointed out, once a debt has become statute barred, there is nothing you can do to inadvertently make it un-barred. Even if it turned out you had written to a creditor just before the six years were up, you would simply list it in the DRO application.

Hope that helps.

Dennis
@natdebtline

CeeGee81181

Hi Dennis,

Thank you for that.. so, to get confirmation if it is statute barred must I ask the creditors, in this case, Abbey National student overdraft, natwest overdraft and egg card? Or can I research this info elsewhere? The last time I paid toward any of them would have been 2005 at latest. Last letter for abbey came in 2010, though.None are listed on my credit report.

Thanks again!

debt_doctor

Hi,


I have discussed stat barred debts with the DRO unit (I am an intermediary, like a few on here) and after discussing that creditors don't generally cooperate in stating their debts are stat barred it comes down to 2 things;
1) does the debtor genuinely believe the debt is statute barred and
2) the debt is not on the Experian report.


If so the stat barred debt can be omitted, but the risk of the debt being shown later to not be stat barred belongs to the debtor. If such a debt pushed you over 15k then your DRO would be revoked.


If all of your debt, including stat barred debt is less than 15k then it makes sense to include it anyway - to avoid any later potential risk.


DD